D7 Visa is the perfect relocation option for economically independent people looking to move to Portugal!
The D7 visa in Portugal, also known as the Passive Income Visa, is a popular option for individuals who wish to live in Portugal and have the means to support themselves financially. It is designed to attract foreigners who can demonstrate a consistent passive income and are willing to invest in the country.
The D7 visa allows you to reside in Portugal for a period of two years, which can be renewed for three years and you must apply in your country of nationality or legal residency.
To be eligible for this visa, applicants must meet certain criteria, including:
- Sufficient passive income: You need to demonstrate that you have a reliable and steady source of income, such as rental income, dividends, royalties, investments, pensions, or other passive sources. The exact amount required can vary, but it should be enough to support your living expenses in Portugal. Cryptocurrency is not accepted as proof of income in this case.
- Travel insurance: You must have valid travel insurance coverage that covers medical expenses including those of medical repatriation, medical emergency, and/or hospital emergency, and the minimum required coverage is 30,000 Euros.
- Tax ID and bank account: You’ll need to acquire a Portuguese tax number and a Portuguese bank account.
- Clean criminal record: You must provide a criminal record certificate from their home country or any other country they have resided in for the past year.
- Housing: You must have suitable accommodation in Portugal, either by renting for at least one year, buying a property in Portugal, or showing a sponsored accommodation from a friend or family member who own property in Portugal.
- Residency requirements: While the D7 visa is a passive income visa, you are still expected to spend a certain amount of time in Portugal each year to maintain your residency. Periods of absence from the national territory cannot exceed 6 consecutive months or 8 non-consecutive months, during the validity of the residence card, except in special circumstances as determined by law.
- Proof of means of subsistence: You have to have enough passive income funds to reside in the country for at least one year.
The D7 requires you to have an income that amounts to more than the Portuguese minimum wage which, as of 2023, is around €760 per month, or € 9,120.00 per year. This amount should be available to you in Portugal. However, this is the minimum amount. Some applicants successfully apply with just a little bit over €760 per month. Others are told they need more, depending also on the level of cost of living they commit to in advance, namely regarding accommodation.
For secondary applicants (e.g. a spouse or partner) a further 50% is required and a further 30% for each child.
The D7 visa allows for a variety of income sources to demonstrate financial self-sufficiency. While specific requirements may vary, here are some common examples of acceptable sources of income:
- Rental income: Income derived from renting out properties or real estate investments.
- Investment income: Earnings generated from investments such as stocks, bonds, mutual funds, or dividends.
- Pension income: Regular pension payments received from a private or government pension plan.
- Royalties: Income from intellectual property rights, such as copyrights, patents, or trademarks.
- Interest income: Earnings from interest on savings accounts, fixed deposits, or bonds.
- Business or self-employment income: Income generated from a business or self-employment outside of Portugal, provided that it can be maintained while residing in Portugal.
- Remote work income: Income earned from remote work or freelancing for clients or companies outside of Portugal.
- Trust funds or inheritances: Funds received from trusts or inheritances that provide a regular income stream.
It’s important to note that the income should be stable, consistent, and sufficient to cover your living expenses in Portugal. The exact amount of income required may vary depending on factors such as family size, location, and cost of living.
When applying for the D7 visa, you will typically need to provide supporting documentation to prove the legitimacy and stability of your income sources. This may include bank statements, tax returns, rental agreements, investment statements, or other relevant documents.
Once you successfully obtain your new Portugal D7 Visa, it will be valid for 2 years. Afterward, you’ll be able to renew it for an additional 3 years. After 5 years, you have the option to apply for Portuguese permanent residency or nationality.
As we can tell, the D7 has quickly become one of the most popular residency permits for moving to Portugal for several reasons:
1. Attainability: The D7 visa is considered attainable because it doesn’t require a substantial financial investment, property purchase, or business establishment. Instead, it focuses on demonstrating a reliable source of income to support oneself in Portugal. This makes it accessible to a wider range of applicants who may not have significant capital to invest.
2. Affordability: Compared to other visa options, such as the Golden Visa or Entrepreneur Visa, the D7 visa is generally more affordable. It doesn’t involve large financial investments or the costs associated with starting a business. Instead, applicants need to show that they have sufficient passive income to sustain their lifestyle in Portugal.
3. Flexibility: The D7 visa offers flexibility in terms of income sources. It allows various forms of passive income, such as rental income, investments, pensions, royalties, or any other stable source of funds. This flexibility enables applicants from different professional backgrounds to qualify for the visa.
4. Minimal bureaucratic requirements: While there are still application procedures and documentation required, the D7 visa has relatively straightforward requirements compared to other residency permits. The emphasis is on proving financial self-sufficiency rather than fulfilling complex business or investment criteria.
5. Access to Portugal and the EU: Portugal is an attractive destination due to its high quality of life, favourable climate, rich cultural heritage, and excellent infrastructure. By obtaining the D7 visa, individuals gain the opportunity to live and work in Portugal, as well as enjoy the benefits of residing in an EU country. This includes access to healthcare, education, and travel within the Schengen Area.
D7 Visa opportunities:
- The opportunity to live and work in Portugal;
- Visa waiver for travel within the Schengen Area;
- Family reunification;
- The opportunity to obtain permanent residency after 5 years, valid for 5 years;
- To opportunity to apply for Portuguese citizenship, by naturalisation, after 5 years;
- The opportunity to apply for the Non-Habitual Resident (NHR) tax regime.
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